Intensifying Competition Urges Development of New Technologies in Flowmeter Market, Says Frost & Sullivan

SAN JOSE, Calif., June 3 -- Flowmeter manufacturers have triggered technology innovations in their crusade to secure shares in the intensely competitive flowmeter market.

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Recent consolidations of several end-user industries have curtailed expansion which is leading to the quest for new buyers.

New analysis from Frost & Sullivan (http://www.sensors.frost.com/ ), North American Flowmeter Markets, reveals that this industry generated revenues totaling $1.36 billion in 2002. Total market revenues are expected to reach $1.81 billion in 2009.

Ever since smart sensors and multivariable flowmeter technologies took over, the mass and ultrasonic flowmeter segments have started recording exceptional growth rates. Manufacturers hope to open more avenues for flowmeter applications by developing new features.

"Some growth is expected from industries including food and beverage and pharmaceuticals, which have not yet experienced a high market concentration," says Frost & Sullivan Research Analyst Daniela L. Carrillo.

Another reason for the shrinkage of serviceable markets is high saturation levels. Flowmeters have permeated nearly all areas since most industrial processes consider it critical to control and monitor their liquids, gases and steam applications.

"Manufacturers are tapping secondary markets with replacement purchases and sales of peripheral accessories," says Carrillo. "Changes in manufacturing techniques to improve accuracy and lower costs are expected to renew interest in these products."

Diminishing maintenance and installation expenses neutralize the high primary costs of flowmeters.

"Although improved processing capabilities and enhanced features reduce the long product life of flowmeters by a few years, customers will still have plenty of time to make good the initial outlay," says Carrillo. "Some end- users replace their flowmeter every 9 to 13 years, however, this is still a long waiting period for manufacturers that have yearly revenue goals."

Vendors will be looking for more frequent substitution orders but will run the risk of losing customer loyalty if their products fail quickly. Manufacturers are relying on the success of microprocessors and greater flow conditioning features to sustain revenue growth.

Frost & Sullivan will hold a conference call at 1:00 p.m. (EDT) on Thursday June 12, 2003 to provide manufacturers, end-users and other industry participants an overview of the North American Flowmeter Markets. Those interested in participating in this call should send an email to Julia Paulson - Senior Media Relations Executive at jpaulson@frost.com .

Frost & Sullivan is a global leader in strategic growth consulting. This ongoing growth opportunity analysis is part of the Sensors Subscription, which also includes market insights on North American Wireless Sensors Markets and North American MEMS-Based Sensors Markets. Frost & Sullivan also offers custom growth consulting to a variety of national and international companies. Interviews are available to the press.

                     North American Flowmeter Markets
                                   A310

   Contact:
   Julia Paulson
   Senior Media Relations Executive
   P: 210.247.2870
   F: 210.348.1003
   E: jpaulson@frost.com

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